The European Green Deal: When macroeconomics matter

European Green Deal rare opportunity

A stockpicking approach usually focuses on the qualities of individual companies, rather than the wider economic environment

However, occasionally, macroeconomic factors combine to create a uniquely favourable environment for certain sectors and companies, enabling them to deliver long-term resilient growth. The European Green Deal is one of these rare swing factors. The EU has set a clear target to achieve carbon neutrality across the bloc by 2050, including tighter reduction in emissions by 20301. The Green Deal has been created to facilitate this transition, mobilising €1trn over the next decade to tackle climate change. Given its size and the very specific areas on which it is focused, we see it creatin...